What's Happening?
The power industry is facing significant challenges due to the growing demand for electricity driven by data center expansion and the electrification of transportation and industry. Building power facilities
is complex, often resulting in overschedule and overbudget projects, especially for first-of-a-kind initiatives. Supply chain constraints further exacerbate these issues. A report by Accenture suggests adopting a multigenerational approach to project development, which involves shifting from bespoke projects to repeatable systems and continuous improvements. This approach aims to connect infrastructure projects technically, financially, and strategically, allowing each project to build on the last. Artificial intelligence (AI) is identified as a key enabler in this process, offering new ways of working in capital and project delivery. AI can optimize schedules, write investment cases, and review risks, providing end-to-end orchestration of capital projects.
Why It's Important?
The integration of AI in power planning is crucial as it offers the potential to overcome cognitive biases and improve coordination across project domains. This can lead to better management of engineering, schedules, risk, and costs, ultimately enhancing the efficiency of capital projects. The multigenerational approach, supported by AI, promises to reduce costs and improve project delivery by leveraging historical data and learnings. This is particularly important as the demand for power continues to rise, necessitating efficient and timely construction of power facilities. The approach also addresses persistent challenges such as cost volatility and supply chain fragility, which are critical for the industry's sustainability and growth.
What's Next?
Organizations may need to undergo structural changes to fully implement the multigenerational approach. This involves shifting from project-based thinking to a programmatic portfolio mindset, which can help pull together the necessary levers for success. AI's role in this transformation is expected to grow, with firms increasingly adopting agentic AI to manage complex processes and maximize efficiency. As AI technology continues to evolve, its application in power planning could become more widespread, driving further advancements in the industry.
Beyond the Headlines
The adoption of AI in power planning raises ethical considerations regarding the reliance on technology for decision-making processes traditionally handled by humans. It also highlights the need for organizations to adapt to new workflows and talent requirements, fostering a culture of continuous learning and innovation. The long-term impact of AI-driven power planning could lead to more sustainable and resilient energy infrastructure, aligning with global efforts to combat climate change.
